Range Action Verification Index (RAVI) - Anyone developed this?

[altrader]

Hi Guys, was just doing some reading on oscillators and wondered if anyone had coded the RAVI, I've had a search but don't see anything? Believe it was Chande who developed this initially.

Description is belowThis indicator measures trend strength. To calculate this indicator you subtract a long MA (65 bar) from a short MA 7 bar) and and divide the difference with the long MA. Then take the absolute value of your result. Thats it!
Usage: Confirmation of Setup. Recommended confirmation level is 3%.

[altrader]

OK, here's a quick and dirty version I've just created. I'm not sure what kind of MA is supposed to be used so I went with HMA.
Hope it's of use to someone.

[NinjaTrader_Josh]

Cool. Thanks for the contribution altrader.

[altrader]

Originally Posted by Josh

Cool. Thanks for the contribution altrader.

I'm happy to (finally) contribute something to the forums here Josh, hopefully as I continue to learn I'll be able to do more.

[Elliott Wave]

This is a great indicator.

It seems only the falling MA works as expected, although my understanding of the indicator could be wrong.

[altrader]

Originally Posted by Elliott Wave

This is a great indicator.

It seems only the falling MA works as expected, although my understanding of the indicator could be wrong.

Can you explain more or give an example/screenshot of where you think the problem lies?

Thanks

[Elliott Wave]

Only the red line seems to plot and also when selecting the other parameters in the market analyzer they return values that seem extremely high, if 0.3 is considered a trend.

As I mentioned though, my understanding of this indicator may be wrong.

[altrader]

Originally Posted by Elliott Wave

Only the red line seems to plot and also when selecting the other parameters in the market analyzer they return values that seem extremely high, if 0.3 is considered a trend.

As I mentioned though, my understanding of this indicator may be wrong.

There should only be one line (the red one) that plots trend strength (for rising and for falling). If there is another line referenced in the indicator it's probably a remnant of the indicator I modified to create this one.

As for the values ... I can't comment as I don't have enough info on what typical values are. I have read in a few places that 0.3 is the accepted confirmation figure though. If I find any more information on this I'll post it here to clarify.

Here's a couple of links I've just got from a google search, they both have screenshots.
http://trader.online.pl/ELZ/t-i-Chandes_RAVI.html
http://www.forex-trading-insight.com/oscillators.html

Cheers

[KBJ]

I've played with a number of different indicators, changing their calls to an SMA to an EMA or HMA just to see what would happen (and hoping that reducing the lag would make the indicator "more responsive".)

In most cases, I've found that this type of change doesn't help. In some cases it completely breaks the indicator.

The problem is that some indicators rely on the inherent lag that an SMA gives.

For instance, with a KeltnerChannel, if you change the base line which is an SMA to an HMA, you get something that's completely unusable. Apparently the usefulness of the original indicator is that the price surges over/under the lag of the SMA, when a lagless moving average is used, it breaks the indicator!

Therefore, I suspect that your indicator needs to use an SMA (which is just called "MA" for "moving average" or just "average" in a number of other platforms, like was mentioned in the references given earlier in this topic), and using an HMA is probably not what was intended, nor (I suspect) will it produce the desired results. I'm qualifying this because I really don't know as I've never seen the indicator before; just an educated guess.

Good luck.

[Elliott Wave]

I tried changing it to a SMA, its quite different.

Using a SMA its very similar to the ADX indicator, which I believe is the intent.

Using the HMA might be useful if you are already using the ADX, but if not I think the SMA is closer to the desired plot.

This is a great indicator btw.

[altrader]

Thanks KBJ, an SMA does make a big difference.

If I figure out a good way to use it I'll post back

[Elliott Wave]

I played around with this and added support for multiple moving average types. Generally I think SMA with the default periods is the best way to use this but some of the other MA types could be worth exploring.

[NinjaTrader_Dierk]

Thanks for your contribution. Would you mind making your custom indicator available here: http://www.ninjatrader-support.com/vb/local_links.php

[Elliott Wave]

This is just for testing, once a few people have tried it and confirm there aren't any major issues, I'll gladly post it in the file sharing section.

[NinjaTrader_Dierk]

Great.

However, you then should delete the links to old/outdated versions to prevent people using it. Whereas the download area would allow you to maintain a single version in a unique location and you could maintain your links to it.